Steve Lamb wrote: > Kent West wrote: > >> Sure, you'll have to pay in at the end of the >> year, but you're paying in less than you were paying, because now you're >> getting the interest. >> > > Ah, but here's the rub. That interest is considered income and he has to > pay taxes on it. Gotta love where one of the problems facing individuals > today in their finances is they don't save enough. So the government decides > to tax 'em for doing the smart thing, saving. > > Yes, but you're still coming out ahead in that the government winds up only getting a portion of the interest rather than the whole of the interest, so you get to keep the portion not going to the government.
But now you've made me think of another angle; the withholding, when it was being withheld, is probably not counted against you for taxation purposes, but if you don't have it withheld, it is. So it may not be saving you money to avoid loaning your money to the government interest-free. I'll have to look into this. -- Kent -- To UNSUBSCRIBE, email to [EMAIL PROTECTED] with a subject of "unsubscribe". Trouble? Contact [EMAIL PROTECTED]
